The Black Friday-Cyber Monday (BFCM) phenomenon has evolved from a single-day shopping frenzy into a multi-week event that dictates the rhythm of the holiday sales season. For business leaders, the 2025 BFCM period presents a critical paradox: immense revenue potential versus the perilous erosion of profit margins caused by deep, habitual discounting.
Simply “jumping on the bandwagon” with blanket percentage-off sales is an outdated and unsustainable strategy. The future of a successful Black Friday lies not in how much profit you give away, but in how much lasting value you create for your customers and your business.
The Discount Dilemma: Volume vs. Value
The core issue for retailers is that heavy, across-the-board discounting has conditioned customers to wait for a sale. This forces a race to the bottom, where the primary competitive advantage is the lowest price, a fight that smaller and mid-sized businesses often cannot win against market giants.
Lessons Learned from Past BFCM Cycles:
- Profit Erosion: Many businesses report record revenue during BFCM, but a post-mortem reveals dangerously thin net profit margins due to high customer acquisition costs (inflated ad spending) and deep discounts.
- Brand Devaluation: Constant, steep sales train consumers to view the full retail price as inflated, damaging long-term brand equity and making year-round profitability a challenge.
- Impulsive Purchases & High Returns: Deals driven by “Fear of Missing Out” (FOMO) often lead to regretful, impulsive buys and a resulting spike in costly product returns, further eating into profits and straining logistics.
2025 Strategy: Shifting Focus to Value-Added Promotions
To harness the spending power of Black Friday without cannibalising profit, business leaders must pivot their strategy from pure discounting to strategic value creation that leverages behavioural science and advanced customer data.
1. Prioritise Margin-Protected Promotions
Move away from site-wide percentage discounts that hit every product equally. Instead, focus on tactics that increase the Average Order Value (AOV) while protecting the margins on your best-selling or most profitable items.
| Strategy | Description | Value to Customer | Value to Business |
| Tiered Discounts | “Spend £100, get 15% off; Spend £200, get 25% off.” | Greater perceived saving. | Pushes AOV higher, justifying the deeper discount only on higher spend. |
| Product Bundles | Pairing a popular “best-seller” with a complementary, high-margin, or slow-moving item. | A complete solution/set at a perceived discount. | Moves inventory; protects best-seller’s individual price point. |
| Gift with Purchase (GWP) | A free, desirable item (e.g., an exclusive sample, service, or accessory) once a spending threshold is met. | Excitement and perceived ‘free’ added value. | Maintains product price integrity; gift cost is often lower than a deep discount. |
| Free Shipping Thresholds | Offer free premium/express shipping above a calculated cart value. | Removes a key friction point (costly shipping). | Drives customers to add “just one more item” to their cart, increasing AOV. |
2. Leverage Segmentation and Personalisation
A generic offer is a lost opportunity. Use the wealth of data at your disposal to segment your audience and deliver targeted value.
- VIP Early Access: Reward your top 10-20% of loyal customers with a 24-48 hour early access window. This isn’t just a discount; it’s a perk that builds loyalty and generates early revenue before the competition peaks.
- Targeted Offers: Use customer purchase history to offer discounts only on product categories they haven’t explored, encouraging new discovery rather than re-buying what they already planned to purchase.
- Retention Focus: Black Friday is an unparalleled opportunity for customer acquisition, but the real profit lies in retention. Post-purchase, focus on swift, personalised follow-up (e.g., product usage tips, care guides, exclusive loyalty program invitations) to convert a one-time ‘deal hunter’ into a long-term loyalist.
3. Explore Non-Monetary Value
Discounts don’t always have to be about price. Create value through service, experience, or social alignment.
- Extended Warranties/Return Periods: Offer enhanced post-purchase security. This lowers the psychological barrier to purchase and conveys trust and product quality.
- Charitable Campaigns: Aligning with a social cause (e.g., “We will donate 10% of all Black Friday profits to X charity”) appeals strongly to values-driven consumers (especially Gen Z) who are willing to support brands that reflect their ethos.
- Experience or Content: For service-based or digital businesses, offer an exclusive masterclass, a free personalized consultation, or a value-rich digital course alongside a product purchase.
The Path Forward: Profitability in a Promotional Climate
In 2025, Black Friday will continue to be a dominant cultural and commercial event. However, for business leaders, success is no longer measured solely by the size of the sales spike but by the quality and profitability of the revenue generated.
The businesses that thrive will be those that view Black Friday not as a necessary evil for clearance, but as a strategic platform to acquire the right customers and initiate a relationship built on value, personalisation, and trust, not just price. It’s time to trade the short-term sugar rush of deep discounting for the long-term health of sustainable profit margins.
